Question

The McMillan Corporation incorporated on September 2, 2011. The company engaged in the following transactions during its first month of operations:
Sept. 2 Issued capital stock in exchange for $900,000 cash.
Sept. 4 Purchased land and a building for $350,000. The value of the land was $50,000, and the value of the building was $300,000. The company paid $200,000 cash and issued a note payable for the balance.
Sept. 12 Purchased office supplies for $600 on account. The supplies will last for several months.
Sept. 19 Billed clients $75,000 on account.
Sept. 29 Recorded and paid salary expense of $24,000.
Sept. 30 Received $30,000 from clients billed on September 19.
A partial list of the account titles used by the company includes:
Cash.........................Notes Payable
Accounts Receivable...................Accounts Payable
Office Supplies.....................Capital Stock
Land.........................Client Revenue
Building.........................Salary Expense
Prepare journal entries, including explanations, for the above transactions.
Post each entry to the appropriate ledger accounts
Prepare a trial balance dated September 30, 2011. Assume accounts with zero balances are not included in the trial balance.



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  • CreatedApril 17, 2014
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